121st Maine Legislature
		Office of Fiscal and Program Review
		LD 599
		An Act To Implement the Recommendations of the Task Force on Rail Transportation and Correct an Inconsistency
		LR 1087(02)
		Fiscal Note for Bill As Amended by Committee Amendment" "
		Committee: Transportation
		Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2003-04	2004-05	2005-06	2006-07
Net Cost (Savings):
	General Fund		$0	$0	$420,000	$420,000
Revenue
	General Fund		$0	$0	($420,000)	($420,000)
	Highway Fund		$0	$0	$20,000	$20,000
	Other Special Revenue Funds		$0	$0	$255,000	$255,000
Fiscal Detail and Notes
	This bill will decrease General Fund revenue by $420,000 annually and increase Highway Fund Revenue by $20,000 and increase Other Special Revenue by $255,000 beginning in fiscal year 2005-06. The net annual loss of revenue is $145,000 and is due to the removal of the cap on the Maine Capital Tax Credit.  The bill also dedicates fines collected pursuant to 29A MRSA section 2602, subsection 4, paragraph D to the Highway Fund.  Based on the Judicial Department's database of case activity, approximately $20,000 in fines is expected to be paid annually to the Highway Fund beginning in fiscal year 2005-06 under this violation.  Therefore, there will be an increase in revenue to the Highway Fund of $20,000 annually and an equal amount of revenue loss to the General Fund beginning in fiscal year 2005-06.
	Section 12 of this bill requires a subcommittee of the Joint Standing Committee on Taxation to review and make recommendations for statutory revisions to tax laws affecting railroads.  Assuming this review is conducted within the number of interim committee meetings ultimately authorized for the Joint Standing Committee on Taxation or during the Second Regular Session of the 121st Legislature, there would be no additional costs to the Legislature as a result of this bill.  Any additional costs to the Department of Economic and Community Development associated with ensuring that transportation needs and the potential use of rail are considered when economic development projects are planned can be absorbed by the Department utilizing existing budgeted resources.